Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

The IRS is helping you not run out of money. 

11/12/2014

0 Comments

 
Editor: Crass Cash
Picture
The IRS and dept of labor has tweaked the 401k rules to allow them for you and the employer to add money via deferred compensation into an annuity plan.  I personally hate annuities because of the fees, but if you can put the money in pretax it would be a big boost. 

Why are they allowing this?  It stems from the decline of pension plans.  Annuities are essentially pensions, but companies and govt (understandably) no longer want to have that liability on their books, nor do they want to be responsible for them.  They’re trying to make it easier and more cost effective to lock in lifetime income for the average retiree. 

My girlfriend was recently offered this opportunity.  She was capped out for her 401k for an assine rule, so the company offered her a deferred annuity through payroll which will allow for her to receive a certain amount of income for life starting at the age of 50.  This is a highly attractive proposition for many people.  

0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    October 2017
    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.